MP Jules James:
Ministry of General Affairs
1. With regards to the new government building, kindly provide and update on the resumption of the construction.
A. Part of the delay related to the completion of the New Government Administration Building had to do with a dispute between the Government and the developer RGM about the responsibility for maintaining insurance of the building and the responsibility for the structural maintenance on the building, as a result of which the RGM refused to sign the lease agreement. The Government was successful in preliminary court litigation on the matter, as a result of which RGM has recently signed the lease agreement accepting the responsibility for these matters. In the meantime, due to stringent fire safety regulations some chNAf.es in the interior partition plans were required. These plans have in the meantime been approved and are pending approval of the financing means to execute the chNAf.es. It is anticipated that within soon the financing for the completion of the partition walls will be approved and the works can be completed. As it pertains to the other works that need to be completed or items procured, consisting of: the exterior infrastructure, custom furnishing, office furniture, technical installations and ICT infrastructure, government hopes within very short to decide regarding financing modalities and future leasing or buy back.
Ministry of Finance
2. With regards to the 5% TOT, can the Minister of Finance provide an update on the new tax system / the new tax structure? will the 5% TOT be replaced by the new tax system?
A. Currently, the Working Group on Tax Reform is revising the tax system of Sint Maarten. Our current tax system, which is inherited from the former Netherlands Antilles, is quite complicated and has a narrow tax base and relatively high direct tax rates (e.g. Wage tax, Income tax and Profit tax). My objective is to introduce a new tax system which is simple, fair and efficient, whilst (more) revenue for the government of Sint Maarten is guaranteed and economic growth on Sint Maarten will not be limited.
To stimulate economic growth, a shift must be made from direct taxes to indirect taxes. Given the importance of the indirect tax in the new tax structure and its impact on the economy of Sint Maarten, a study is being conducted to see whether the TOT should be reformed or that a new indirect tax system should be introduced. At this stage, it is too premature to say how the 5% TOT will be replaced by a new tax system.
Update New Taxstructure
Within the Working Group on Tax Reform various tax models are being analyzed, data is being collected/processed and the financial-economic impact of certain tax policies is being calculated. Many important stakeholders have been consulted regarding the new tax system, among others the Central Bank, the SHTA, the Chamber of Commerce, the Foundation Tax Committee, the unions (WICSU and WIFOL), etc. The stakeholders were very supportive of the underlying principles of the reform exercise which aim to simplify the tax system and broaden the tax base so that tax rates can be as low as possible for Sint Maarten in the long term. Also, regular meetings will be scheduled with the tax authorities on the French side to strengthen the co-operation on tax policy and tax enforcement between both sides of the island so as to avoid businesses or individuals fleeing from the Dutch side to the French Side to do business there. Within a couple of months, the Working Group on Tax Reform will present its findings and the draft outline of the new tax system to the Council of Ministers. Once it is approved, the ordinances will be drafted and submitted to the Parliament. My objective is to introduce and implement the new tax system by the beginning of next year
MP Petrus de Weever:
Ministry of Finance
1. On page 16 of the budget mention is made of an existing loan at the WIB to the amount of 16 million guilders, with regards to the Sport Upkeep Foundation; based on interest mentioned for 2010, these calculations are incorrect and should state. Kindly provide an explanation on the calculations and the correct amount.
A. The loan by the Sports Upkeep Foundation was paid off in October 2011, and the last amount was NAF. 119,144.04. The loan does not affect the 2012 budget because it was paid off in 2011.
2. A budget of almost 430 million is in excess of taxes generated form Real Estate. Is it the intention to go behind foreign owned real estate?
A. Yes. To generate extra revenues we will levy and collect Income Tax on the rental of real estate of non-residents. The expected extra revenue from this initiative is roughly NAF. 21 million. On advice of the Cft a Plan of Approach has been drafted to monitor this process.
3. There are certain concessions made to in this case American citizens. They will be paying double taxation. Is it realistic to include this as an item in the budget?
A. Sint Maarten does not have a treaty for the avoidance of double taxation or non-taxation with the USA. Based on the international principles on double taxation regarding to income derived from immovable property, the state where that immovable property is situated has the right to tax (the so called lex situs rule). When double taxation occurs, it is primarily the resident state –in this case the USA- that should avoid it by exempting the income derived from foreign immovable property from their national taxbase. Therefore it is very realistic to include this item in the budget.
4. Please indicate if this will be regular practice and if these taxes be imposed locally? Far fetched amount to realize these monies when fiscally it is not in place.
A. So far it was not common practice to levy and collect income taxes from this specific group of tax payers. But it will be continued and as far as imposing it locally that is already the case. It is based on the "Landsverordening op de Inkomstenbelasting 1943".
To get extra revenue this is one of the priorities of the Tax Administration in 2012.
Landsverordening op de Inkomstenbelasting 1943:
artikel 1, lid 3: "aan de Inkomstenbelasting zijn mede onderworpen de niet binnen de Nederlandse Antillen wonende personen, die binnenlandse bronnen van inkomen hebben als bedoeld in artikel 17"
artikel 17, lid 1: "DE NIET BINNEN DE Nederlandse Antillen wonende personen bedoeld in artikel 1, lid 3, zijn belastingplichtig naar hun gehele belastbaar inkomen genoten in het kalenderjaar of belastingtijdvak, voor zover dit werd verkregen uit de opbrengst van:
a. binnen de Nederlandse Antillen gelegen onroerende zaken of de rechten waaraan deze zijn onderworpen;"
MP Ruth Douglas:
Ministry of Education & VSA
1. There are high discrepancies in the budget with regards to the " Algemene subsidieverordening". Please explain the differences in the budget 2011 and 2012 of the following organizations:
Belverdere Community Center (Why the increase)
Dutch Quarter Community Center
Sint Maarten Medical Center
A. Belverdere Community Center received NAF. 120.960 in 2011 as well as in 2012
Dutch Quarter Community received NAF. 50.400 in 2011 as well as in 2012
Sint Maarten Medical Center received NAF. 925.000 in 2011 as well as in 2012
Ministry of General Affairs
2. Page 16:VKS: 531.000 is the government still paying for the Stichting and if yes the documentation for the current budget has not been mentioned.
A. Yes, the government subsidizes the Foundation. (Note: The budget for 2011 was NAF. 794.250 and for 2012 it is NAF. 800.250. It is not clear where the number mentioned by the MP comes from.)
3. Stichting overheidsgebouw: the building generate a yearly income in 2010 an amount of 1.2 million. 1.1 comes for the fire and ambulance department. 93 mill fish market 71 mill festival village. In what way does the fire and ambulance generate money? Who actually is renting the building?
A. The fire department generates an average of NAF. 36,000 per year for hurricane passes and fireworks permits (import, transport, storage, exports and public displays). The building is housed only by fire and ambulance department and no rent is paid.
MP Patrick Illidge:
ALL MINISTRIES
1. What is each minister doing in their capacity ministers to soften the burden of the people of this country?
A. The Ministry of TEZV: has a collection of policies geared towards soften the burden of the people, the directions are as follows:
– a. Increased inspection and control to ensure consumers are properly protected;
– b. Increased efficiency and customer service;
– c. Reviewing the GEBE operations, with a recommendation of a lower base rate on utilities;
– d. Tourism is focusing on increase airlift, and new marketing strategies geared towards, increasing our tourism figures, which will result in jobs and revenue.
A. Ministry of Education: In order to help often the burden on our people, government gives students study financing. The Ministry has also launched the "Get off the Block, Get on the Bus, Get Busy" (GB3) project helping participants to get started with moving on to their next station in life. MOUs have also been signed with various educational institutions abroad guaranteeing reduced rates for our students. Furthermore, we have been concentrating on studying in the region, where costs for quality education are significantly lower.
A. Ministry of Finance: Specifically to reduce the burden on the people, the Minister has engaged and communicated his plans to reform the tax system as well as improve the service level of our tax administration. Not only is this aimed at softening the burden but in addition the result is striving to provide better service to the people while developing a more transparent, and fair tax system geared towards increasing overall tax compliance.
A. Ministry of VSA: This question is mainly directed to the executing agencies
– Programs for immaterial guidance
– debt management
– debt research
– crisis care & 24 hours crisis care;
– "Employability through training";
– Basic social work training as well as crisis care training;
– Broadening of the scope of the Social Services department;
– Tailored service to the elderly, physically & mentally handicapped;
– Elderly research
– Appointment-system for better customer service;
– Pilot "Public Service Centre";
– Customer friendly training;
– Complaint system and procedures for SOD;
– INDP;
– Ambulance sub-station in Simpson Bay;
– Community Helpdesk;
– International Human Rights platform;
– Research on knowledge, attitude, perception and behavior regarding sexual activity and family planning needs
– Automated and integrated ICT system
A. Ministry of General Affairs: As the axis for many departments in the area of personnel, ICT, Facility Affairs etc, the Ministry of General Affairs concerns itself very much with the service aspect of government. In addition, this Ministry oversees funding programs for all Ministries. Not to forget, the institutions that offer redress to citizens regarding government actions, such as the Ombudsman.
The Minister of General Affairs also has a vested interest in the overall community development and bringing government to the people via the Department of Communication and outreach programs such as the neighborhood programs.
MP George Pantophlet:
Ministry of Finance
1. Explain since the workforce has increased why this is not reflected in the taxable income or salaries and wages?
A. Predictions on taxable income are based on the received revenues in previous years. Predictions based solely on the increase in the workplace is difficult, because the salary distribution is unknown.
2. The ministry of Finance shows an increase in expenditure of 3 million guilders. Please explain.
A. The expenditure increase is caused by growing salary costs on the one hand because of filling vacancies at the tax office (+1.5 mln) on the other hand because of standard annual increases (+0.5 mln). Costs of materials increased because of interest (+1.2 mln) and depreciations (+1.4mln). The ending of USONA project causes a decrease of income and expenditures of 1.8 mln.
3. The ministry of Finance shows an increase of some NAF. 26 million guilders. What contributed to this?
A. Income of the ministry of finance consists of taxes. New measures are taken to increase tax income by 28 mln. The ending of the Usona program leads to a decrease of 1.8 mln so ultimately the budget shows an increase of about 26 mln. Main part of that increase is due to the initiatives concerning the real estate taxes that have to be paid by non-resident condo-owners. This tax reflects in the category "income tax" (+22 mln). The TOT is calculated for 12 moth now (2011 TOT started by the end of February) (+ 4 mln). New personnel enabled us to restart collecting "successiebelasting" (+ 1mln)
4. Please explain on page 14 the matter of long lease (erfpacht) and rent agreement.
A. The information is a summary of the domain affairs database related to long lease contracts as per dates mentioned held under responsibility of the department Head of Domain affairs
5. In the article of corporation it is stated that the license rights come directly to the countries the amount on the account of St. Maarten is 26 million guilders. Please provide a breakdown as to what this amount consist of.
A. The total collected in 2011 was NAF. 24,869,000. A breakdown is not available.
6. Over what period was the amount of 26 million guilders accumulated?
A. Please bear in mind that the amount of NAF. 26 million has not been collected as yet.
7. The draft budget states that for 2011 the revenues have been carefully budgeted at 26.3 million guilders. Do we now have the actual revenues generated for 2011?
A. Yes, the actual revenues generated for license fees in 2011 was NAF. 24,869,000.
8. Did GEBE pay the concession fee in 2010 and 2011?
A. GEBE concession fees were paid.
9. Did PJIA pay the concession fee in 2010 and 2011?
A. PJIA concession fees have not been paid as yet.
10. Did the Harbor pay its concession fee for 2010 and 2011?
A. Harbour concession fees were paid
11. Please explain how government plans to tax this income from these condominium owners? And what kind of impact will this have on sxm Real Estate?
A. The Income tax from real estate of non-inhabitants is based on certain criteria: number of persons that owns a condo, the average rental income, high and low season, percentage of tax etc (based on a survey held in 2011). We don’t expect any negative impact on the real estate market, because the "Landverordening op de Inkomstenbelasting 1943" is already in place. A plan of approach for this project was made and the whole process will be monitored closely by a project team.
12. Since these persons accordingly to what is mentioned concerns hundreds of persons living abroad but deriving income on sxm. Does government plan to contact the tax authorities in the country or countries where they reside to see if their income from these rental homes is known and already being taxed?
A. Persons residing outside of Sint Maarten and deriving income from immovable properties situated in Sint Maarten, are subjected to tax in Sint Maarten. Whether or not these persons are paying tax in their country of residence is not relevant for the enforcement of Sint Maarten’s domestic tax law. In the event that Sint Maarten requires the assistance of the tax authorities from other countries in the determination, assessment or collection of Sint Maarten taxes, such a request will be made to our tax treaty partners.
13. Based on what did government estimate the revenues of income tax for these condos at 48.5 million guilders? And is this per annum?
A. Based on the calculation it is anticipated that the amount of income tax is NAF. 9,7 million on a yearly basis. Going back five years this means a maximum amount of NAF. 48,5. In the budget a conservative amount is taken into account: NAF. 21 million.
14. It is a fact that there are business that don’t comply with the tax rules with regards to wage tax, income tax, profit tax and turnover tax. Government states that the tax department is busy controlling the year 2009. A print out of the assessment shows an amount of 600.000 guilders for wage tax. They will be controlled individually and the final result is that it will bring in 500.000 guilders including AVBZ. Is government saying that the compliance has increased?
A. No, the Tax Department is basically stating that as a result of the control of the "jaarwerk 2009" an extra NAF. 500,000 can be generated.
15. Page 27: Please explain why it is expected to collect only 1 million guilders of the 1.6 million guilders. Is government saying we will lose some 40-45% of the revenues?
A. No, government is budgeting very conservatively, at least NAF. 1 million is expected to be collected.
16. When was the tax on succession land established? And why is government going back 3 years?
A. The National Ordinance on Inheritance tax is introduced in 1908. In the past 10 years, due to lack of enforcement capacity in the tax department, this tax has not been assessed. According to article 13 of the General Ordinance on General Taxes, the tax inspector can issue a supplementary assessment for the insufficiently levied tax 5 years after the end of the calendar year in which the tax debt originated. In the event the taxpayer has acted in bad faith, the tax inspector can go back 10 years. If too little tax has been levied on the component of the taxable object which is held or has arisen abroad, the tax authority can issue an additional tax assessment 15 years after the point in time on which the tax debt originated.
For pragmatic reasons, the assessment of the Inheritance tax will only go back for 3 years for now. An officer within the inspection department has been appointed for the handling of the Inheritance tax.
in bad faith
17. On the matter of the carrental tax, room tax and time share tax is government saying that these institutions have not paid their taxes?
A. Revenues from car rental tax, room tax and time share tax have been received in 2011.
Due to lack of (audit) capacity, it was not possible to perform on the spot checks or audits in 2011. The tax Department is planning to start auditing these tax types in 2012.
18. There is a typo: do government not mean October 1st, 2012?
A. No. The target date for the new employees to start was October 2011. This date was not met, but we were able to secure new collection Officers in December 2011/January 2012.
19. Are there any outstanding taxes related to 2005 that are still owed to government? How much is owed by individuals? And how much is owed by companies? Is it still collectible?
A. There are still outstanding taxes for 2005. It is not possible to determine how much is owed by individuals and companies due to the fact that it is not separated in our system. There are individuals that have sole proprietorships as well. The actual amount outstanding cannot be determined because it is based on a tentative assessments. So reporting the actual amount owed is not possible. The collectability of these assessments is based on the actions taken by the Receivers Office and the clients themselves.
Yes, please refer to the: INVORDERINGSVERORDENING 1970 ( A.B. BOVENWINDSE EILANDEN 1970, NO.3) which states in:
Art. 10
1. De aanslagen in de in artikel,1 bedoelde belastingen, welke vijf jaren, na de dagtekening van het aanslagbiljet, of na de laatst betekende akte van vervolging niet zijn ingevorderd, zijn verjaard.
2. De verjaring wordt echter gestuit door de erkentenis van de belastingschuldige, hetzij door woorden of daden, van het bestaan der belastingschuld.
3. Voor de verjaring telt niet mede de tijd, gedurende welke de belastingschuldige zich metterwoon buiten de Nederlandse Antillen bevindt.
20. Page 28: Mention is made of going after the car rentals, the restaurants and the hotels. What about the lottery holders?
A. Based on the yearly planning the Tax Department will audit certain business groups including lottery holders.
21. What is being done to prevent the receivers from sending the same summons to individuals?
A. The Receivers Office is in the process of streamlining its process, but the situation where summons are sent out can, however, not be completely prevented. There are clients who have already made payments via pre-paid pending the bill, they are always informed to contact the office when the invoice is received. This would allow the collection officer to make the necessary adjustments. There is also an internal check that is being done on certain payments when invoiced. The Receivers Office is looking into the possibility of linking the pre-paid payments with assessments in the near future to alleviate the sending of summons when the payment is already made.
22. Do we have another typo because it says that the receiver’s office is in the process to execute this plan starting September 12, 20011?
A. No, that is not another typo. Actions are being taken by the Receivers Office in order to increase revenues. This is an ongoing program in 2012. The start up of the plan was in September 2011.
23. Based on the what criteria or regulation can people and businesses be assessed prior to 2005?
A. According to articles 13 and 17 of the General Ordinance on General Taxes, the tax inspector can issue a supplementary assessment five years after the end of the calendar year in which the tax debt originated in the event the taxpayer has not paid or has paid less than the amount of taxes due. In the event the taxpayer has acted in bad faith, the tax inspector can go back ten years.
24. Page 29: How is the progress with the "vereffeningscommissie?
A. An update will be provided to government by the end of March. The "vereffeningscommissie" is working hard to finalize all the research regarding the "boedel scheiding"
25. The matter of 40 million that was submitted by St. Maarten government, how is this progressing?
A. The matter is being discussed with Minister Spies to see if her approach with regards to the NAF. 40 million will be any different from the former Minister Donner who basically said that the invoices had to be submitted before 10-10-10 something which this cabinet took office on 12-10-10 so cannot be held responsible for. Never the less it is important that Sint Maarten receives the debt relief which was signed for on November 2, 2006. This government will continue fighting until the very end to receive the monies which were put aside for the payment of Sint Maarten’s payment arrears up to and including December 31, 2005. Discussions regarding this topic will continue in my next visit to the Netherlands.
26. Explain why increase on the "eigen schuld titels".
A. The capital expenditures will partially be funded with bonds. So the more we invest the more the debt to be paid will be.
27. Can we get a break down of the 13 million "overige" as is stated the budget?
A. In Chapter 4 "Kapitaal investeringen" is an amount budgeted for NAF. 13 million. The breakdown can be found in the detail list
Ministry of TEZVT
28. Explain the relationship between the gross domestic product and the workforce
A. The relationship with the workforce and GDP – if GDP is increasing, then either the workforce is increasing, or salaries are increasing – GDP takes into account taxable income.
The workforce may increase, however the increase of GDP depends on the taxable income. Therefore if a majority of the jobs are in the lower income brackets, then this income will not necessary be taxed and fully recorded into the GDP.
29. Pg. 10; NAF. 42 million to be generated under the Minister of TEZVT; from what source will this be generated from? Kindly provide clarity on this, how many requests are there for business licenses and how far back are these requests?
A. Under TEZVT the ministry generates income from Licenses, Tourism related revenues, and gasoline revenues.
A total of 1844 license requests were received for the entire year 2011 and for the month of January 2012 combined. From this total, 464 are still pending, licenses that are included in this figure are:
– Licenses for NV/BV’s, Sole Proprietors, Directors, Branches, licenses for Vending, vending during Carnival 2011, later closing hours, Operational licenses for Restaurants, Bars, Hotels, sale of alcohol, licenses for persons selling food and drinks during public events and cancellations of business licenses.
– Specific on the business licenses, a total of 1318 license requests were received over the period 2011 including January 2012, from which are 366 pending.
30. In regards to the Small Business Development Foundation; what are the taxes and social premiums dealt with? Were any subsidies paid to the SBDF in 2011?
A. 90% of the 2011 subsidy was paid to SBDF – the remainder will be paid once all relevant documentation has been received. The Foundation is required to pay their taxes and social premiums in compliance with the relevant legislation.
31. The issue of the lottery ordinance. Referring to last year question, the lottery ordinance is about 15 years old. Why not look at the lottery license holders? We don’t have any idea that they generate. Have them pay more than they are paying now. Are the fees of the lottery license holder up to date have they paid up till 2011?
A. The revision and adaption of the lottery ordinance, has been included in the Ministries general overview of ordinance that need to be changed and included in the 2012-2016 "Wetgevingsprogamma" of Legal Affairs
The payment of the lottery license fees and the collection thereof, falls under the competency of the Receivers Office.
32. Casinos: casino fees almost in the same manner as the lottery licenses have not been increased, why is government not looking in that direction, they are not paying ToT. Mentioned is made that in the last meeting a committee was established to look into this matter. Does government have insight into the revenues generated by casinos? If they say they cannot pay they have to show the financial statements. Are the casinos up to date where their fees are concerned, if not they are not up to date with payment, is there any penalty? How many casinos are there presently.
A. As stated previously the collection of the license fees for casinos falls under the competency of the Receivers Office. Presently there is a total of 14 active casinos on St. Maarten.
33. Bureau telecommunications: 8 million NAf. Did government at any time receive a financial report from BTP and when was the last time this was received?
A. Government received the following financials from BTP:
– a. 10/10/10 – 31/12/10;
– b. Half year for 2011 ie January – June 2011;
– c. 1.5 mln guilders was received in 2011 from BTP.
Ministry of General Affairs
34. Who are the directors and shareholders of Marven NV? Question from the past. No rent is being paid, for the building that currently housed the Council of Ministers; please provide clarity on this.
A. The Finance Department is having this looked into for further clarification. To date there are no known directors or board of directors of Marven NV.
35. The issue of the building in which the VKS is housed, is it used for free or being paid for? It is not clear if the building is owned by government.
A. The building in which they housed is owned by MARVEN NV. The building is given to VKS free of charge, based on a decision of the former executive council.
36. How long is the VKS in existence and were any financial statements made? What was the budget for 2011 and what is it now for 2012?
A. VKS is in existence from 1997. Until 10-10-10 it fell under the budget of the N.A. A financial statement for 2011 was made and submitted to the VKC because the financial responsibility for that year is by the VKC. The budget for 2011was NAF. 794.250 and for 2012 is NAF. 800.250
37. Foundation of Government buildings: There are plans of renovating the former Fire dept building and keep archive there; what is the financial cost and where is this budgeted?
A. The location has been designated for the National Archives. The plans to renovate the building have not yet been submitted. A team is preparing the renovation plans for the building. For 2012, NAF. 346.40- is budgeted for the realization of the National Archives.
38. Please explain what the "wagenpark" of 2 million guilders is about.
A. "Wagenpark" or car fleet refers to the vehicles bought and/or leased by the government for the organization. The 2 million on the capital budget is for purchasing of new vehicles.
40% of all Government cars are over or will be 5 years since purchased this year. In order to minimize repair costs, cars will be replaced.
Ministry of VROMI
39. Can we get clarity on the 110 million? What is presently owed by the Harbour Group of Companies?
A. Total Amount was 150 million USD; 90 million USD for refinancing, 50 million USD for the Causeway, 10 million future investments Harbour operations.
40. Page 32. Where does government plan to borrow the 30 million for the Ring Road? What are the people of Sint Maarten getting for the 30 million and later additional 15 million guilders?
A. During 2012 a Terms of Reference will be prepared to commission the design and construction of the Ring Road, for which the abovementioned funds are intended. In return, the community of Sint Maarten will receive improved traffic circulation in the Greater Philipsburg area, which is in the interest of economic development. Also the perimeter of the Great Salt Pond will be defined to avoid further uncontrolled filling, and a pedestrian and jogging path created, allowing the motorists, as well as pedestrians and more safe and pleasurable experience of the Salt Pond shore front.
Ministry of Justice
41. Please explain the over 7 million guilders reduction in revenues budgeted for income in the Justice Ministry?
Ministry of education
42. Page 16; when was the last report of the Sports Upkeep Foundation submitted?
A. The foundation submitted its 2010 financial report on January 26, 2012. The preliminary balance sheet report up to and including October 2011 was submitted in December.
43. What is the outstanding in loan payments for the Melford Hazel Sports facility? And is government up to date with its payment?
A. Status of payment of Melford Hazel Complex loan: there is no loan for Melford Hazel complex.
MP Frans Richardson
Ministry of Finance
1. Can you please elaborate as what measures are being taken in order to provide a completed and detailed 2009 / 2010 financial report.
A. The balance sheet for 2009 has been drawn up early 2011 already and was the starting point for the annual account for 2010. The 2010 annual account (draft) has been compiled late 2011 and is now being evaluated by the accountant (SOAB) and after the SOAB completes its review it will be submitted to the General Audit Chamber.
2. Regarding the 48 million derived from real estate taxes from foreigners to be collected. He needs some clarity on how this will be done. How much of those condo’s homes that the minster is talking about that will provide 48 million guilders. Is this the letter /report that had to be provided by the Cft by May 12 (ref reply to the Cft letter of January 13, 2012).
A. The Income tax from real estate of non-inhabitants is based on certain criteria: number of persons that owns a condo, the average rental income, high and low season, percentage of tax etc (based on a survey held in 2011). A plan of approach for this project was made and the whole process will be monitored closely by a project team.
Based on the calculation it is anticipated that the amount of income tax is Nafl. 9,7 million on a yearly basis. Going back five years this means a maximum amount of NAF. 48,5 million. In the budget a conservative amount is taken into account: NAF. 21 million.
3. In that same letter mention is made about the agreement, can we get a copy and if this is not the case can you give an explanation as to why this was not done.
A. See attachment
4. In letter of December 14, 2011, of Cft page 4, it is mentioned that strengthening of tax reform of the tax collection and monitoring of the inflow of good into the island is the primary task of MINFIN. What goods are being monitored by the ministry of finance.
A. The Cft is advising that the monitoring of goods coming into the country should be a first priority of the Minister of Finance. The monitoring of all goods imported from other countries is a task of Customs (Ministry of Justice).
5. Ambitious five year plan as stated by Cft towards the improvement of the Financial Administration of St. Maarten, has a start been made of the 5 year plan, if yes please provide update.
A. In 2011 an assessment was performed in cooperation Cft where SXM was benchmarked against the standards of Public Expenditure and Financial Accountability (PEFA ). This standard was developed to help governments to monitor their performance in the area of financial management and to record the ambitions to improve to a desired level of performance. After having specified the ambitions, a plan of approach is drawn up determine every step that is foreseen to get where we want to be. Such a plan is now under construction and will be part of the first quarterly report of 2012.
Ministry of education
6. Crisis among the youth, youth employment: are there any plans / programs in order to assist the youth employment issues.
A. Current programs being carried out to alleviate unemployment: GB3, Youth Entrepreneurship Program, Youth Development Program, Employability through Training.
Ministry of VSA
7. Is there any proposal options regarding increase of old age pension.
A. The old age pension system research began in 2011 and will continue in 2012. The department is finalizing the recommendations on a sustainable pension reform for St. Maarten.
Ministry of General Affairs
8. What is the status regarding the vision of what government wants to accomplish
A. That’s in the governing program.
9. National security account: no information on the expenditures or budget amount. What is SXM getting, want breakdown on this.
A. For National Security NAF. 3 million is budgeted. Based on the "Comptabiliteitslandsverordening" the finances must be reported to the "Algemene Rekenkamer". Given the activities that the National Security Service is involved in it is not permissible to publicly submit a breakdown on the expenditures of this organization.
10. Account nr. 3201, NAF. 1.7 million for Internal and Kingdom relations and bureau foreign affairs for NAF. 736.237. What is SXM getting for this and want breakdown on this.
A. The budgeted monies will assist in ensuring that the goals of these departments will be accomplished. These goals can be listed as follows:
Internal Affairs and Kingdom Relations (BAK):
· promoting adequate regulations and preventative and repressive/curative provisions in the area of defense and national (physical) security;
· policy initiatives and making proposals for legislation and regulations aimed at acquiring and maintaining a transparent government;
· promoting and supporting the national development opted for by government, including properly balanced partnership agreements with foreign parties;
· coordinating, developing, executing, monitoring and evaluating integral partnership projects and -programs, as well as advising and supporting entities;
· promoting good, stable relations with the Kingdom;
· recruiting of candidate-donors, lending support to the concluding of covenants with and bearing responsibility for maintaining donors.
Foreign Affairs:
· Contributing to the realization and to the execution and coordination of the foreign policy;
· supporting the realization, the execution and the administration of treaties;
· maintaining and facilitating diplomatic and foreign relations with countries outside of the Kingdom;
· bearing responsibility for (policy) proposals and coordination of all formal protocol matters and their execution.
Ministry of Justice
11. Why the sudden increase: what work will the Const. Court be doing in order to justify the expenditure. Same applies for the "Raad voor de Rechtshandhaving" at NAF 2.5 million.
A. In 2011 the Constitutional Court was not budgeted by the ministry of Finance. This was later on corrected with a budget amendment and it appears now as if there is an increase which is not the case. The constitutional court handles cases which are brought forward via the Ombudsman. The Council for law enforcement (‘Raad voor de Rechtshandhaving’) is budgeted for one (1) million guilders. The council for law enforcement audits the services and execution of the tasks carried out by the ministry of Justice.
12. GOG, school of correction in Curacao, account 44201.521. Does SXM still use the services of this institution, what are the costs associated with this and how many people are institutionalized in Curacao.
A. In the elucidation of the budget for the ministry of Justice it is mentioned that funds were reserved for execution of judgments of the court in which a youth is placed at the GOG. Since there is no GOG in Sint Maarten, the youth would have to be placed in Curaçao. As soon as the GOG in Sint Maarten has been established, the youth will be placed here. The daily costs of placement of a youth in a GOG are NAF. 400.
13. What are projected costs for pre-financing projects by MNO and Windward Roads in comparison of 2011 and 2012.
A. All pre-financing project have been paid out.
14. Based on the letter of the January 24, 2011, a second authorization request regarding bond issue was requested. Please give update as to what said the bond issue was used for.
A. We pulled back said request
Ministry of Education
15. Sports: backburner of this government, facilities in dire need of repair, a program to renovate facilities was put in place. The loans of upkeep foundation should have been coming to an end this year or next year, can parliament be provided on the exact time when the loan of the foundation will be ended, will government continue using the foundation as the base for upgrading the facilities. Can we get a plan of program of how programs will provided in these facilities. Also a plan of how government intends to continue with the maintenance and upkeep of these facilities.
A. We are busy working on the plans for sports, not just the programs to be run in the facilities, but also for the maintenance of facilities, upgrading of coaches and athletes, etc. These will be announced shortly.
Ministry TEZVT
16. Tourism, economic Affairs: taken by the headlines in the newspaper that government is in the process of chNAf.ing the rebranding of this island. We spend a lot of money on the rebranding of the image of St. Maarten. Seeing the amount of money invested, would like to hear form the Minister a presentation on the vision of chNAf.ing the rebranding strategy, if this is the case.
A. We are not chNAf.ing the branding or as quoted rebranding of St. Maarten. We are implementing the former logo to the existing branding. The St. Maarten logo is a so called "brandlogo" and is a part of our entire branding.
The consistent positive feedback on the former logo is the reason for the reimplementation.
MP William Marlin:
Ministry of Finance
1. Did government receive any of these financial accounts of the government owned companies , how soon can government expect these financial accounts. Has Cft received any of these financial accounts. Why these accounts have not been send to parliament.
A. Government has received the financial statements of 2009 and 2010 from the Harbor which will be copied and supplied to the Griffier.
2. p.26 Extra income projected of some 48.5 million NAF. This will be coming from the taxes of condos of expatriates, people not living here. How government intends to get this done. Is the amount a one shot income that government is banking on for this year, is it for taxes owed by these expatriates over a period of 3 years or 5 years. What will be a realistic amount to collect.
A. The Income tax from real estate of non-inhabitants is based on certain criteria: number of persons that owns a condo, the average rental income, high and low season, percentage of tax etc (based on a survey held in 2011). A plan of approach for this project was made and the whole process will be monitored closely by a project team.
Based on the calculation it is anticipated that the amount of income tax is Nafl. 9,7 million on a yearly basis. Going back five years this means a maximum amount of Nafl. 48,5. In the budget a conservative amount is taken into account: Nafl. 21 million.
3. P 26: clarity needed: 2 banks that passed on their 3 % TOT to their clients. Because of this wrong approach by the banks government intends to collect another amount a possible NAf 129.000 based on wrong execution of the laws by these 2 banks. Based on the principle and equal treatment of all, what is government take on this, only zero in on these 2 banks, what about the other businesses. Did government send out any notification? Does government intend to carry out this retroactive assessment across the board or only these two banks and if only these two banks, why only these two banks.
A. The mentioned percentage of 3% Turn over Tax is the percentage up to the year 2011. Based on audits the conclusion is that two banks wrongly executed the existing legislation. The retroactive assessment will be levied at all banks, if found in default.
4. Receivers going after collecting more funds that are there. P 27. Target date of new employees: October 1, 2011. Has the target date been met, have these extra persons been hired, how many, permanent /contract/ in government services / uitzendbureaus, was a government agent used to provide these people. If target date was met can we be provided with an overview on how they contributed in increasing revenues.
A. The target date of October 1 2011 was not met but we were able to secure new collection Officers in December 2011/January 2012. Five Collection Officers were hired on contract. It is too early to determine how the new Collection Officers have contributed to an increase in revenues, because they are still in training.
5. Explain projected increase of 4 million ToT. How does government intends on collecting more on ToT. Provide overview of the actual figures collected with the projected amount.
A. The extra increase of Nafl. 4 million is the difference between 3% and 5% TOT that was not collected in the months of January and February 2011.
6. Why outsource the government salary administration and to which entity, if so. What about the government employees that were working in that department. Are relocated? If not, why not?
A. Nowhere in the budget mention is made about outsourcing of government’s salary administration. It is not clear where this information is concluded from. Government has not outsourced Salaries and Wages department.
7. Can government provide an overview of the travel expenses by the Chair of parliament and how much allowance is paid out from 2010 – 2012.
A. Parliament is an autonomous body and responsible for the own business operations. This information should be made available by Parliament itself.
8. Hiring of support staff for parliament: proper procedures have not been followed. He cannot remember a meeting where it was agreed upon that a faction would get more support staff. He ask clarity on the matter how the salaries for the new staff has been covered.
A. Parliament is an autonomous body and responsible for the own business operations.
Ministry of General Affairs
9. All rent that government is paying is brought under one chapter totaling about 13 million guilders. That was the way done as under Island territory SXM where Facility services had one budget for this. Explain if there is not supposed to be a difference not that we are a country and is the budget not supposed be reflected per ministry.
A. As per 10-10-10 the "Landsverordening organisatie en inrichting overheid" entered in to force. This ordinance together with the "Organisatiebesluit Algemene Zaken" continued and maintained (and even expanded) the responsibilities of Facility Services (FZ) as developed when Sint Maarten was an island territory. This is the reason why the expenditures for leasing of buildings are being administered under the budget managed by the Department of Facility Services of the Ministry of General Affairs.
However, after almost a year and a half of country status there is a need to evaluate the functioning of the organization and evaluate if the premises on which certain aspects of the organization are based are still valid. In this respect, it is not excluded that in the near future the lease of buildings will be on the budget of the individual ministries. If that will be the case the role of "FZ" will be adjusted to the new situation.
10. Request overview of all SLA’s government entered into, with whom, for what and for what period.
A. General Affairs has information on the following SLA’s:
· SLA for the HCoS with regard to assistance from Min of General Affairs and Min. of Finance;
· SLA between DIV and Foreign Affairs for services with regard to structuring of the archive of Foreign Affairs;
· SLA between DIV and Ministry of Justice for management of personnel files of the civil servants of said Ministry;
11. There is independence of Parliament in establishing their own budget. The costs of the parliament building is not reflected in this budget, that needs to be separated as well as the budget of parliament needs to be separated from the Ministry of General Affairs.
A. The building of Parliament is temporarily included in the budget of Facility Services. Based on the "Comptabiliteitslandsverordening" the budget of Parliament and the "HCoS" need to be separated from the budget of General Affairs. This will be done in due time.
12. Civil servants working on SXM working for land would be given an opportunity to work and placed in the new organization of SXM. Have all the civil servants of the central government and former island territory been placed. Provide overview of the amount of civil servants who have been not been placed, where they used to work and why not yet placed.
· VROMI: 15 persons.
· TEZVT: 3 persons
· OCJS: 4 persons
· AZ: 9 persons
· FIN: 6 persons
13. Support staff of Commissioners prior to 101010, at least one that used to work at the receivers office that has not been placed. Receiver stating they need staff, strange for government not able to find a suitable place for a senior civil servants after a year now. Explanation is requested.
A. Not sure to whom is being referred to in this individual case.
14. No show and no show-policy, ghost civil servants. How successful has it been. Can government provide an overview of civil servants not reporting to an office and what government has done in dealing with this situation.
A. There is a No Work, No Pay Policy which allows stopping a person’s salary payment should they not report to work. This generally works, as employees return to work as soon as they notice that they have not been paid. The approach to "ghost civil servants" has not been successful in the past, as these people were notified as soon as actions were being undertaken to deal with their absence, resulting in their sudden return to work for short periods after which they returned to "ghost status". At this point, government has requested ‘herkeuringen’ for a number of these civil servants as most of them have alcohol, drug or other social or medical problems.
15. Give overview (simple): how many civil servants government has who qualify to be in the pension fund and how many registered at the pension fund. If discrepancy, what is government doing about this. Does government has reservation in its budget for these cases. How large is it and how did government calculate it.
A. # of civil servants (conform PLvO incl. schools, Hoge Colleges but excl.
the government-owned NVs and other PLvO art. 5 entities ) that are eligible for the fund as per 01.01.2012: 1,991 # of civil servants that are registered with APC as per 10.10.10: 1,511 This is a difference of 480 persons.
In order to reconcile the two administrations APS has proposed forming a work group that will compare the two administrations (APC and the
employers) and gain insight as to who these persons are and gather their correct info for registration in the fund. The work group should be comprised of representatives from P&O, Finance, the school boards, APS and where needed third parties brought in to do the needful.
16. Would like government to provide an overview of St. Maarten pension fund. What is the investment strategy of our pension fund? How much of the funds of our pension fund is invested locally, how much in foreign markets and how is it spread
A. The CBCS has clear regulations with regards to the percentage of the pension fund’s portfolio that can be invested abroad (outside SXM and CUR) versus within the local market (within SXM and CUR): max 40% (abroad) versus min 60% (local). In its investment policy, APS is adhering to these percentages.
Currently of the total asset portfolio: 26% is invested abroad, 54% locally and circa 20% is still pending the division of assets from APNA.
Ministry of Justice
17. Ministry JUS, some decreases in the projected expenditures. Budget safety plan has been decreased, is the budgeted amount sufficient to carry the plans of approach that still need to be executed, provide overview on how that 4 million will be spend and provide overview of the execution of the plans of approach in JUS.
A. The budget has not decreased drastically. Each year there is a budget NAF. 4 million. In 2011 an amount of NAF. 2 million was added to the budget; these funds were not used in 2010. The ministry of Finance temporarily booked the funds which were not included in the budget posts of the ministry of Justice under the plans of action of the ministry of Justice.
Ministry of Education
18. Loans granted as study financing: a portion was a grant, portion loan and portion parental contribution. Under island territory, if government was not allowed to give loans how can government be collecting the payback. Now we are country. Government still has some 4 million on the budget, has government the intention to collect and is government collecting. Will the policy be updated and what does it entail, how many beneficiaries and does government intend to broaden the policy. Does government collect any outstanding loans from students, if yes how much?
A. NAF. 4,000,000 is allocated for study financing and the Study financing policy is being reviewed and a proposal has been drafted and it is being studied by the JZ. The Ministry is being advised that as soon you sign a loan agreement and you have a besluit you are obligated to pay back the amount to the Government.
The Division of Study financing is working on the collection of the outstanding study financing amounts ( financial officer has been recruited and will start within short. This person will be exclusively dealing with the collection in collaboration with the Finance Department.) Incentive policies (BC 220408,12) article 5.1 is still in place and student who return to St. Maarten and work for the Government are granted a 10% of their loan (IBG/ DUO)or local government. There are additional incentive for the ones who want to come back St. Maarten.
Ministry of VSA & General affairs
19. The issue of the aging population. People not being reported to the pension fund. This compensated "bij wijze van onderstand". Did government continue this policy. How many civil servants have been collecting pensioen "bij wijze van onderstand", how much this totals, how much of the existing civil servants would qualify for this policy. How many people government has in service that fall in this category and how much government project the amount to be?
A. The policy of "Onderstand bij wijze van pensioen" is still in effect. For 2012, 11 additional persons will receive "Onderstand bij wijze van pensioen" and 4 additional persons will receive "Uitkering bij wijze van pensioen".
20. What is the policy / what are the plans of the government to increase the pensionable age? How far are the plans and what do the plans entails. How is the spread of investment strategy in terms of low or high risk.
A. This issue is being studied
MP Lloyd Richardson
Ministry of Education
1. Youth: A plethora of discussion have taken place surrounding our youth, violence, the absence of parental guidance, latch key periods, their involvement in criminal activity, premature sexual involvement, custody of children in dividend familial situations and in cases of abuse, foster homes, schools of corrections. Hence, what are the fiscal policies and priorities of government, regarding the following issues vis a vis the charted income, to be able, to provide funds, in order to meet the needs of the above mentioned problems? Has financial consideration been made to address these needs? Could the pertinent ministries indicate where these allocations are within the budget.
A. There are no fiscal policies regarding youth. However, youth is a priority for this administration. For that same reason, I have split the Department of Youth and Sport into two separate departments so that we can run a more effective youth department based on the priority of our youth. The Ministry of Education, Culture, Sports, and Youth affairs also has a Youth program run by the Department of Education Innovations currently running in the various community centers and in addition to the programs funded in the various after-school centers.
Ministry of Justice
2. I see an allocation for GOG for instance on the budget of the ministry of Justice on page 41. Is this to cover for infrastructural needs for a school of correction? It seems too small for this, is there then an allocation somewhere else in the budget related to this subject? And if not, is there probably a pan / inter-ministerial plan to jointly allocate funds for this great need as reflected very clearly by several interest groups and civil servants?
A. In the elucidation of the budget for the ministry of Justice it is mentioned that funds have been reserved for execution of judgments of the court in which a youth is placed at the GOG. As long as there is no GOG in Sint Maarten, the youth must be placed at the GOG in Curaçao. When the GOG in Sint Maarten is established, the youth will be placed locally. The daily costs of placement of a youth in a GOG are NAF. 400.
Ministry VSA
3. Given that this ministry for years has been faced with ever escalating cost for healthcare, we would like to know, which tariff structure for health services is being followed? And if there is proposal on the table, already adjusted to suit our current situation? If yes, has this new tariff proposal been taken into consideration when planning this budget?
A. The final health budget related to health care expenditures of civil servants and citizens with a medical assistance card as approved by the Council of Ministers are based on the current existing medical tariffs for this health insurance and insights on actual costs as they developed over the recent years.
4. Has the present budget the ambit necessary, to cover the interval mentioned (baby of a teenage mother was given medical insurance by government, the coverage began on the day of application and not from the date of birth. Mothers face then a large medical bill incurred in the period between the baby’s date of birth and the date of application for medical aid). And if the change of policy is made to accommodate this need, which alternative post within this budget may be used to possibly mend this situation, rather than leaving these bills to be absorbed by the hospital?
A. In general parents have the obligation to have proper insurance coverage. In case of new born babies they have 2 options:
For emergency cases , when a new born must be flown out to medical facilities elsewhere there is an emergency procedure in place authorizing the agency SZV to immediately provide a (temporary) guarantee for the involved medical costs. For newborn babies without medical emergencies, the regular application procedure as set by law is required.
5. Super specialty needs, transplants, and other procedures not completely covered by the SZV package which conversely form a part of the normal insurance package in the Netherlands remains a large challenge and threat to the financial viability of the SZV fund. What approached have been devised to handle such cases, when they occur.
A. SZV manages various funds and healthcare is provided based on the medical coverage of your package. Thus, differences may lie in the privileges provided to the various card holders. In addition, the SMMC is currently in the process of negotiating with the various entities within the kingdom to guarantee access to specialized medical care.
Ministry of Justice
6. Is government going to support free movement of people and use and use this to defray expenses by allowing writing out from the Census St. Maarten and writing in elsewhere, to access health care, without repercussions, related to pension reduction etc. based on emigration so to speak?
A. The discussion on this subject matter has not started as yet. The ministry of Justice supports the current situation wherein there is free movement of people in the Kingdom. The in-dept discussions on this subject matter will take place in the Kingdom working group which was formed after the first Kingdom Conference was held on December 15, 2011. The Ministry of Justice will have two representatives in the working group.
MP Janchi Leonard:
Ministry of Finance
1. How can the Minister of Finance indicate how he can present the 2013 budget in a timely fashion?
A. The process that leads toward an approved budget 2013 before year end, again will be a tough one despite the learning curve we experience. Additional measures are being taken to speed up the process without damaging quality consist of an earlier start, strict planning, strict guidelines concerning financial ceilings, improved cooperation between core departments and the controllers and delivery of ministerial budgets by respective ministers themselves.
2. What is being done and how will he approach the tax collection.
A. The approach on tax collection is to strengthen our department through personnel to be able to handle the work load in an efficient manner. Our actions will be increased to reach more of our delinquent clients to secure government’s revenues.
3. Provide an update on the tax collection department.
A. The collection department has hired 5 new employees for the collection section to strengthen our collection including the cash department, to alleviate long lines for our clients. The collection officers are being trained at the moment and this is going well. They will be soon handling tax payers files which will enable us to reach more delinquent clients which in turn will result in increased revenues.
All Ministries
4. Upgrading government service towards the people. The service rendered to the community is not up to par. How are the ministers planning to attack this to provide better service to the community?
A. Ministry of TEZVT: In upgrading the government service towards the people, different programs are executed within the government and my ministry, such as:
– Upgrading legislation to minimize red tape;
– P&O has several of ongoing trainings for customer service, and policy development;
– The ministry is also reviewing to implement new IT technologies, to better service the public and assist the departments;
– Improvements in the HR cycle geared towards performance – ie. Civil servants will be evaluated based on performance, which will translate into better service for the public;
– Government is also launching a new general complaint system, where the public can lodge complaints;
The economic license department improves the processing of the timeframe for licenses, by:
– a. Total automation of the license process;
– b. Mandate the Acting Secretary General to sign and approve license requests;
– c. Filling the critical vacancies at the economic license department;
– d. Training of personnel.
A. Ministry of Education: Service is at the center of the Ministry’s Mission Statement. This has been emphasized repeatedly in the two retreats the Ministry held so far. The Minister has established some benchmarks that include the prompt reply to inquiries, treating all student matters with top priority.
A. Ministry of Finance: Currently projects to improve the servicelevel withing the tax administration are online and linked to the reform of the tax system. In addition, the ministry of finance is a support ministry. We are currently improving our financial management in order to be able to better support the entire government, with sound budgets and financial statements. This allows the other ministries to provide better service to the public at large
A. Ministry of Justice: The ministry of Justice is busy with an upgrade of the sense of safety within the population of Sint Maarten. This is primarily done by the execution of the plans of action of the immigration department, the police force and the house of detention. The urgent matter which is dealt with primarily is adding qualified personnel to these departments as agreed with the partners in the Kingdom.
A. Ministry of VSA: This question is mainly directed to the executing agencies
– Programs for immaterial guidance
– debt management
– debt research
– crisis care & 24 hours crisis care;
– "Employability through training";
– Basic social work training as well as crisis care training;
– Broadening of the scope of the Social Services department;
– Tailored service to the elderly, physically & mentally handicapped;
– Elderly research
– Appointment-system for better customer service;
– Pilot "Public Service Centre";
– Customer friendly training;
– Complaint system and procedures for SOD;
– INDP;
– Ambulance sub-station in Simpson Bay;
– Community Helpdesk;
– International Human Rights platform;
– Research on knowledge, attitude, perception and behavior regarding sexual activity and family planning needs
– Automated and integrated ICT system
Ministry of Justice:
5. How is the BAVPOL coming along, wants more information on the continuation.
A. The first BAVPOL course went well. A total of sixty two persons (of a total of seventy) finished the course and have been placed at the Police force, the immigration department, the house of detention and the Customs department. A second BAVPOL course has been scheduled for the second half of 2012. This depends on the availability of funds.
6. Is the Minister planning on instituting a beach control to among others prevent illegal vendors?
A. The beach patrol units is already in place and is being carried out by the BAVPOL personnel working at the police force.
MP Roy Marlin
Ministry of Finance
1. Urges the Minister of Finance to look at the revisiting of the tax structure.
A. The established workgroup is already revisiting the tax structure.
2. Indicate how far are we in submitting the budget according to the compliance with the computability ordinance.
A. Budget 2011 already met the conditions of the "Rijkswet", the "Comptabiliteitslandsverordening and the Cft requirements. Budget 2013 also has to meet all the requirements of these ordinances as it already does in the version that is being discussed now.
3. Can you provide a copy of the presentation given by the minister of Finance?
A. A copy was provided to the Griffier.
Ministry of Justice:
4. The MP forwarded a letter to the Minister with 30 questions and has not received an answer; the letter was in regards to the "rechtspositie" of the police officers.
A. The ‘rechtspositiebesluit’ of the police force is being reviewed by the minister of Justice together with the police unions. The police union has already given it’s comments on the abovementioned decree. The chief commissioner of police supported by his staff is busy giving the necessary input.
5. Within the budget for Justice in 2012 where it pertains to the "mobiliteitsplan" of the police. How much was taken into consideration of the mobility plan for the police?
A. In the draft budget which was submitted by the ministry of Justice, an amount of one (1) million guilders was reserved for investment in/financing of the mobility plan.
6. Box in Cay Hill: Provide parliament with an update on how far the plans are for the execution of the box.
A. A proposal for the financing of the expansion of detention capacity was discussed in the council of ministers and it was decided that the ministry of Justice together with the ministry of Finance were to look for additional funds. This process is ongoing.
7. Fees residence permit: is there any intention to increase the fee in 2012, if yes then when will it take place.
A. The draft amendment of the law on admittance and expulsion is at the ministry of Justice. The council of Advice has already reviewed the draft law. In the coming weeks the draft law will be further discussed and reviewed by the ministry of Justice and the Legal department.
Ministry of TEZVT
8. Ordinance for public transportation: how long will we sit back and look at these things taken place before we bring these issues back in line?
A. Currently chNAf.es are being made to the LB HAM regarding public transportation AB1970 #4. These changes will enable the organization to enhance the control, help-driver, gypsies, routing and cooperation with the French side. Consultations will be held with stakeholders and a final plan will be presented by half year.
MP Laville:
Ministry of TEZVT
1. Social economic initiative: total in 2011 Is 0 and in 2012 is also 0, please explain.
A. As mentioned previously all projects where income nor expenses run through the administration of the government these were taken out of the budget 2012 since these payments are being made directly by Usona and do not see the administration of the government. Therefore these income and expenditures were removed from the budget 2012.
Ministry of General affairs
2. Are there any plans for government to invest in some sort of alternative energy for the government building? Is the amount mentioned the Government for the electricity for the government building alone or is the parliament building tied in one?
A. Talks already started with the Management of GEBE in order to restructure the payment process. All locations that the government is being billed and connections that the government cannot account for will be closed off
A comprehensive study has to take place in order to place solar panels.
3. Why aren’t the vehicles that are not being used parked up to save government money?
A. Based on contractual agreements with parties several heads of departments have permission from their Ministry to use the department vehicle for home/work usage. Several other departments have 24 hours usage of their department vehicle.
Together with the SOAB the Government vehicle policy is being finalized for approval by the Council of Ministers.
4. Are these vehicles being appraised every year?
A. Talks have started with the suppliers and insurance companies to reach a reasonable pricing system for appraisal of all the vehicles of Government.
All Ministries
5. Can each minister look within their ministry for ways to cut back on expenditures such as electricity and paper?
A. Ministry of TEZVT: Of course we can inventories ideas on how to reduce costs of electricity and paper usage within my Ministry.
At this moment a registration and tracking system of documents is implemented in the government that will influence the usage of paper, by scanning documents and store those documents on the server.
The staff of my Tourist Bureau currently uses Skype for international calling, this will reduce the costs on phone calls.
A. Ministry of Finance: The Minister of Finance has engaged in meetings with third parties with the intention of reducing overall travel expenses (airfare) for Sint Maarten government.
A possibility of a collective approach to group various government insurance policies to tender on one bid has been started.
A vehicle policy has been drafted and is currently being finalized.
Solar energy and timers on a/c’s will be looked into for the new government administration building
A. Ministry of Justice: This is not possible within the ministry of Justice, because the expenditures on the office equipment and office materials are located in the central budgets which are allocated at the ministry of General Affairs.
A. Ministry of VSA: simple ways that can reduce costs within the Ministry of VSA are the implementation of automated services, the parking of government vehicles on weekends, the scanning of documents to minimize expenditures on paper and processing of paper.
A. Ministry of General Affairs: In general, several of the supporting services are already engaged in ways of saving on paper. An intranet is currently being set up that will enable both civil servants and Ministers to have online access to documentation. Agenda’s, advices as well as presentations to the Council of Ministers are distributed either via e-mail or their shared drive; with the use of I-pads etc., accessibility is via these new means of technology instead of hard copies. The document tracking system of DECOS is another manner of decreasing the volume of paper. Documents are scanned and available online. All these projects are constantly being improved in order to have government "think and act green", a must in today’s world and simultaneously a cost saving effort.
MP Louis Laveist:
Ministry of VSA
1. Individual Minister to stand and give the policy plan of the budget. Is there involvement from the labour mediator? If there is involvement then show when and how.
A. The matter is currently in court.
2. Is there collaboration in the policy plan with residence permit and what effects is it going to have? Are there going to have financial consequences. How far is it? Where are we with it?
A. The Ministries of VSA and Justice have already started discussions on the synchronization of the employment permit and the residence permit on civil servants level. The intention is to simplify the procedure by eliminating unnecessary double procedures, however maintaining integrity of the respective permits. The necessary automated infrastructure has been established in order to facilitate this synchronization. In addition , there is also a draft cooperation agreement being reviewed.
3. How much revenues have been gone last year and how much this year. Are there sufficient revenues? There are many people that are not receiving social welfare; How are we dealing with the request of the workers at the Simpson Bay resort?
A. There are no revenues from this department. Based on the budgeted figures the amounts are the same.
Ministry of OCJS
4. Indicate what is the policy plan and where is it covered in the 2012 policy document.
A. The Cultural Policy Framework left behind by the former commissioner of culture has not been taken off the table; in fact, it is being tweaked.
5. Where is the cultural policy? What are the aspects? Where are we with it? What is the Ministers policy in regard to education on a whole? Should we look at the re-education of the teachers? Requires an overview on where the Minister stands.
A. Policy on education: the Education Plan, which explains government’s policy in details, will soon be explained to Parliament.
Policy on teachers: Government considers teachers as nation-builders, and they are being treated as such. We work in close collaboration with the teachers union, and all efforts are being made to ensure that teachers in the classroom are qualified and competent.
Policy on management of schools: government only manages public schools, and the policy is to manage them effectively and efficiently. All other schools are managed by school boards as the competent authority, and it is the policy of government to hold them accountable for the proper management of their schools. At the core of all of this is the child.
Ministry of Justice
6. What is being contributed through the budget on youth crime?
A. The focus is only now being put on the integral combating of youth crime. Before funds can be allocated in the budget, an inventory has to be done of the existing problems. There is a judicial youth policy which was drafted during the Netherlands Antilles. The minister of Justice has composed a working group under leadership of the Public Prosecutor’s Office to inventories abovementioned policy and submit a proposal for the implementation of the policy.
7. Where and how in the budget reflects social organizations. Explain where the policy for the Ministry of Justice is in the budget.
A. The subsidizing of social organizations is done by the ministry of VSA. The ministry of Justice subsidizes the resocialization of persons who have undergone their punishment by the courts (SJIB) and the persons who have to undergo treatment for addiction (Turning Point).
8. At what stage is the ministry with the sub stations?
A. The ministry of Justice has contracted the services of the Safety Plan expert who is busy with the preparation of the locations of the sub stations together with the property owners in the different districts and with the SMHDF.
9. How much money will be spent? How much is planned?
A. See enclosure on "Wijkposten" (substation). USONA will finance the security and furnishing costs of the two pilot substations in Belvedere and Sint Peters for an amount of NAF. 540.000. The remaining costs, a.o. energy (electricity and water) are allocated on the central budgets under the ministry of General Affairs.
10. How will having sub stations affect in a positive way?
A. The substation will get the police closer to the community in the neighborhood to combat crime by increasing the communication with the public and increase the readiness to report a crime. The police will also be in closer contact with the youth to guide them in good behavior.
11. How many more person are going to be recruited and in what areas? Not only for the police but also in the area of immigration.
A. The recruitment which took place is sixty two persons on the BAVPOL level working at the police, Customs department, immigration department and at the house of detention. Also twenty one Dutch police officers were recruited as experienced workers to help build up the police force.
12. How is the Minister dealing with the issue of immigration?
A. It was decided before October 10, 2010, that the immigration would be separated from the police force to give special attention to the implementation of the immigration policies. This process is ongoing. It is expected that all policies will be in place by the end of the year 2012.
13. Give an entire overview of Ministry of Justice.
A. See enclosed overview.
14. How far is the Ministry with Brooks Tower permits? where are they with category 1, 2 and 3 applicants?
A. Administrative processing of the requests for category one have been finalized. Category two is in process.
Ministry of General Affairs
15. Provide an entire overview on the portfolios on the Ministry of General Affairs
A. See attached organogram
16. Wagen park: what is the policy on who is issued a government vehicle? What kind of management is ensuring that there is no abuse to the government vehicles? How many cars are there? How many more will be purchased? How much has government already invested?
A. The Secretary General of a Ministry indicates the need for a vehicle within his/her Ministry and thus take full responsibility for ensuring that there is no abuse of government vehicles within his/her Ministry.
There are over 200 governmental vehicles excluding firetrucks, motorbykes, (heavyduty catapilars
17. What is the approach on the concerns by the Council of Advice?
A. It is not clear which concerns are referred to. Kindly elucidate.
Ministry of VROMI
18. The Impression is given that this ministry is in charge of everything. Provide and explanation / policy in regards to the entire portfolio.
A. That totally depends on what you consider everything as according to the ordinance the ministry of VROMI handles Spatial development, Public Housing, Environment and Infrastructure.
The ministry plan is currently being fine-tuned and is the basis for the preparation of the budget. The important components are:
– The finalization of a housing vision for meeting the needs of the population as pertains to affordable housing. This plan is currently in preparation and will involve many stakeholders. Important will be the realization of more affordable homes such as has been started at Hope Estate and will be continued in other areas.
– The preparation of zoning plans to manage the spatial development on the entire Dutch side of the island. These plans are also in preparation and will be presented to the Parliament in due course.
– The continuation of the improvement of the infrastructure in all districts of Sint Maarten, through the beautification of the neighborhoods program that has been started in areas as St. Peter and Middle Region. This concerns all infrastructure components such as roads, sewage, drainage, sidewalks and street lighting.
– The continuation of the program for the expansion of the main infrastructure networks such as the road network through the creation of new road links, such as the Bridge through the Simpson Bay Lagoon and Link 3; such as the expansion of the sewage treatment network and treatment plant; and such as improvement of the drainage network and management of drainage water like the pumping of the Great Salt Pond.
– Putting in place proper maintenance and upkeep plans for the infrastructure and public areas, such as the district clean up and improvement project.
– The realization of a new policy for long lease tariffs and the issuance of land in long lease.
– An improvement plan for the processing of permits and the enforcement of development regulations in accordance with issued permits.
All these elements will be further elaborated in a more detailed ministry plan for 2012 and following years.
19. Explain the policy to your approach on the floating Bond and capital expenditures.
A. The bond is one of the options (including possibility of a loan of bank)to finance a capital expenditure.
20. Provide a policy /approach plan as to how the budget is affected when looking at the road disaster. What is the Minister going to do in this regard?
A. The ministry has a maintenance plan which is derived from the ministry policy plan for 2012 to repair roads by means of patching the asphalt roads and to repair the concrete roads by replacing the damaged concrete. The dirt roads are also graded in accordance with a program. The budget to carry out all repairs on roads and all other roads related works is NAF. 2.359.500.
At present the Front street is being repaired as all the sagged bricks (which have been laid over 10 years ago) are being fixed by the government.
· The backstreet road repairs are commencing on February 27th 2012 and are being carried by the contractor Windward Roads B.V. at its expense.
· The Welfare road was applied a top layer last week Sunday February 19th 2012 making the road fully usable once again.
· The potholes are being filled according to schedule which is being published in the daily papers to inform the motorist of works being carried out.
· The Bush road repairs are pending as the government is handling the water leaks of the water company which refutes it as being a problem of water leakage. The repair works will be finalized during the month of March 2012.
· The sewage plan approach is defined in our multi annual plan. The government has already embarked on the placing of many sewage lines underground in various areas being upgraded. The expansion plan for the sewage treatment plant at Illidge road underway and should be completed in the 3rd quarter of 2012. The main sewage collection line for the complete Cul-de-Sac basin is presently being installed built and will be completed this year to be connected to the expanded sewage treatment plant.
· For the area of Cole Bay and further West area a study will soon be carried out to determine the most suitable location for sewage treatment facilities, while collection lines are being put in place with all road improvement projects being carried out.
· With regards to the garbage policy this was approved when the garbage collection contract with a lifespan of 5 years was recently approved by the minister and ratified by the Governor General through a Country Ordinance.
· With regards to the processing of garbage the ministry is finalizing the review in collaboration with KEMA of the various technologies for the waste-to-energy processing plant.
21. Explanation as to why the bridge is more important than protecting the health of the people.
A. The bridge is not more important than protecting the health of the people. A government is responsible for a wide variety of areas as health care, education, but also economic development and infrastructure. The bridge will alleviate the traffic congestion in the Cole Bay area which will stimulate further the economic development of the island and therefore job creation. Job creation is in the benefit of the people of the country Sint Maarten and will promote economic prosperity which is good for the health care of the Sint Maarten population.
22. If the bridge is being build an explanation on the entire components is needed.
A. The bridge will consist of an extension of the Airport Road over the Simpson Bay Lagoon on piles through the land in the area of Port de Plaisance and connect to the Union Road. The Union Road will also be completely upgraded and will be equipped with improved sewage and drainage provisions.
23. Explain his policy in regards to the areas in which he is in charge of.
A. See 18
24. Explain these multimillion dollar projects that are covered under the budget from A-Z. would like the parliament to receive an explanation outside of the budget meeting on how the monies are to be spent.
A. The ministry has allocated a total of Naf 40.213.000 for capital expenditure in the budget year 2012. This includes the Naf 30.000.000 for the Ring Road around the Great Salt Pond. Naf 2.500.000 is reserved for the purchase of land needed to realize infrastructure projects and Naf 7.713.000 is reserved for capital investments in paving of dirt roads and improvement of drainage channels through hard surfacing.
Ministry of TEZVT:
25. Provide a policy approach on his Ministry.
A. Ministry of TEZVT: The Ministry will provide a policy approach within the next couple months.
Ministry of Finance
26. In regards to the tax department: can a system be develop that when persons are deceased the information can be sent to the relevant departments.
A. This activity is definitely taking place. Upon requests, the Civil Registry provides the Inspectorate of Taxes and their system is consequently updated with the information with regard to the deceased.
This process however, needs to be structured more effectively. This matter has the attention of both departments.
27. Pension: policy approach to the high costs of canons why can’t a policy plan be given in regards to the high cost of canons? Why can’t a policy plan be given to persons having government property?
A. The policy on canons is based on the long lease land ordinance which stipulates that the land should be leased for a certain percentage of the value as established by the Government. This system is outdated and is currently under review. Within soon the Ministry will propose to establish a new policy for the issuance of land in long lease and the level of the canons for the land, which will very likely include a change of the ordinance by the Parliament. It will be considered to also look at a policy for the transfer certain properties in ownership to persons.
28. 10% additional revenue: policy plan in regard to ensure that the revenues can be generated.
A. The policy plan is the "Landsverordening op de Inkomstenbelasting 1943". This is the Legal basis.
29. How will these people be paid retroactively and how will it be justified?
A. According to articles 13 and 17 of the General Ordinance on General Taxes, the tax inspector can issue a supplementary assessment five years after the end of the calendar year in which the tax debt originated in the event the taxpayer has not paid or has paid less than the amount of taxes due. In the event the taxpayer has acted in bad faith, the tax inspector can go back ten years.
MP Sylvia Olivacce-Meyers
Ministry of Finance
1. Legally after how many years can government hold accountable for payment of old taxes and what efforts are done to ensure that government collects revenues presently and what is done if someone does not meet deadline?
A. According to articles 13 and 17 of the National Ordinance on General Taxes, the tax inspector can issue a supplementary assessment 5 years after the end of the calendar year in which the tax debt originated in the event the taxpayer has not paid or has paid less than the amount of taxes due. In the event the taxpayer has acted in bad faith, the tax inspector can go back 10 years. If too little tax has been levied on the component of the taxable object which is held or has arisen abroad, the tax authority can issue an additional tax assessment 15 years after the point in time on which the tax debt originated.
Art. 10 of the "Landsverordening op de Inkomstenbelasting 1943, states the following:
1. De aanslagen in de in artikel,1 bedoelde belastingen, welke vijf jaren, na de dagtekening van het aanslagbiljet, of na de laatst betekende akte van vervolging niet zijn ingevorderd, zijn verjaard.
2. De verjaring wordt echter gestuit door de erkentenis van de belastingschuldige, hetzij door woorden of daden, van het bestaan der belastingschuld.
3. Voor de verjaring telt niet mede de tijd, gedurende welke de belastingschuldige zich metterwoon buiten de Nederlandse Antillen bevindt.
The collection department has hired new personnel for the collection section to strengthen our collection and also for the cash department to alleviate long lines for our clients. The collection officers are being trained at the moment and this is going well. They will be soon handling tax payers files which will enable us to reach more delinquent clients which in turn should result in increased revenues.
If the taxpayer has not filed the tax return or filed it within the legal timeframe, or if the taxpayer has not pay, or fully pay or does not pay within the legal timeframe, this will constitute an omission for which the tax inspector can impose a penalty (article 18 and 19 of the National Ordinance on General Taxes). If it is due to an intentional act or omission or gross negligence of the taxpayer that the assessment issued was too low or otherwise too little tax was levied or that tax which has to be paid on declaration, was not paid, not fully paid or not paid within the legal timeframe, this will constitute an criminal offense for which the tax Inspector can impose a penalty of at most 100% of the tax debt (articles 20 and 21 of the National Ordinance on General Taxes).
2. Is there something legally in writing that parliament can get a copy of.
A. Yes. Please find attached the National Ordinance on General Taxes (Algemene landsverordening Landsbelastingen).